Question: Ben's Furniture Store buys a sofa at a wholesale price of $114.00. If the markup rate at Ben's Furniture Store is 55%, what is the total markup for the sofa in dollars?
Answer: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $55\%$ is equivalent to $\frac{55}{100}$ which is also equal to $55 \div 100$ $55 \div 100 = 0.55$ Now you have all the information you need to use the formula above! $0.55$ $\times$ $$114.00$ $=$ $$62.70$ The amount of markup on the sofa is $$62.70$.